Kenya Power secures funds for expansion project
25 August 2014, 15:59
Nairobi - The African Development Bank (AfDB) has committed a US$150 million loan (approximately KES 13 billion) to finance part of Kenya Power’s target of 1 million new electricity connections this year.
Principal Secretary for Energy and Petroleum, Eng. Joseph Njoroge, disclosed that the loan was the first phase of the AfDB financing, totalling about Shs.60 billion) that will cover connection costs for approximately 400 000 customers before the end of the year.
Kenya Power Managing Director and Chief Executive Officer, Dr Ben Chumo, said the company would maintain last year’s success to accelerate the rate of connections, which saw the company record 443 000 new customer connections up from 307 000 recorded the previous year.
Chumo said the company was working closely with the energy ministry and financial institutions to ensure allocation of adequate resources to maintain the high rate of connectivity in the coming years.
He said this was part of demand creation for the 5 000 MW additional capacity envisioned by the government and help attain 70 percent electricity penetration by the year 2020, up from the current 32 percent.
The two officials were speaking at a media briefing session in Athi River where they witnessed a Shs159 million power upgrade project aimed at stabilizing power supply to customers in Nairobi’s rapidly growing satellite towns of Athi River, Kitengela, Namanga, Machakos and Mlolongo.
– CAJ News
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